I am a newbie and am trying to set S/R lines on the GBP/JPY charts. I am trying Nickb’s system and am looking at 4hr/daily charts and have set some lines here, but I’m not sure if I’m on the right track.
Can anyone give me some advice or pointers? Thanks.
Hi PipStealer, you may want to post this thread in BP’s “The Holy Grails\Free Forex Trading Systems\NIckB’s 4H Scalping Method”. I just noticed Target is actually doing the same thing.
Two things though, first don’t give up just because nobody responds to your posts as quick as you might like. Second, don’t get stuck on thinking that Support and Resistance are mere lines. They are actually zones and as such have a little play built in them.
I apologize for not taking the time to look into this further, i gotta run, to much to do in the next couple of hours, before an 11 hour drive.
Hey rtv2, I’ll post my question there too later today, I might tidy up the lines first.
By saying a “little play”, do you mean that if I was looking for a breakout for example, I would wait maybe 20 pips after it crossed the S/R line or whatever before entering the trade to avoid fakeouts?
Thanks Bleek, I’ll get on it and repost the new lines later today.
Just for a bit of background, I had a mini account and lost the whole thing by not having a proper system and trading stupidly, so I am going to try and train myself to stick to a plan almost like a weightlifting routine and go from there. I picked the nickb method because I liked his explanations and it seems an easy to understand system for beginners and a good way to learn candlesticks.
When it comes to horizontal lines as well as trend lines there really is no hard rules or wrong way to do it. Well I suppose if you’re not even close it’s probably wrong.
But if you connect two (preferably 3) or more points you can pretty much draw a line connecting them.
Keep in mind though, watch price. Only reason I don’t like Nick’s method so much because it is dependent on crossing the line as a means to enter. At least that’s from my understanding. Now I’m not knocking it as the dude is wildly successful at it, as is phil.
But it really comes down to watching how price reacts around the lines you drew. Price will let you know if it’s relevant or not.